Two recent reports have highlighted how corruption is steadily destroying Pakistan’s economy by depriving the majority of citizens of their legitimate economic and social rights. Transparency International and the International Monetary Fund (IMF) have separately examined this issue in press releases issued a few weeks ago, painting a grim picture of governance failure in the country.
The annual survey released by Transparency International Pakistan (TIP) reveals that corruption has taken deep and firm roots across multiple sectors of society, most notably the police, procurement departments, and the judiciary. As is well known, TIP’s National Corruption Perception Survey is designed to gauge public perceptions regarding bribery and corruption encountered in everyday life.
According to the survey findings, over 24 percent of the 4,000 respondents identified the police as the most corrupt department, particularly in Punjab. It is worth noting that the police have consistently ranked as the most corrupt institution in previous TIP surveys as well. The judiciary ranked third on the corruption scale, as identified by 14 percent of respondents, with the highest perception of judicial corruption reported in Khyber Pakhtunkhwa at 18 percent.
The survey further reveals that nearly 77 percent of respondents expressed dissatisfaction with the government’s efforts to curb corruption. In this regard, the highest incidence of bribery related to access to public services was recorded in Sindh, where 46 percent of respondents reported being forced to pay bribes. The corresponding figures were 39 percent in Punjab and 20 percent in Khyber Pakhtunkhwa. Moreover, 59 percent of respondents believed that provincial governments were more corrupt than local governments. This perception was particularly strong in Punjab (70 percent), followed by Balochistan (58 percent), Khyber Pakhtunkhwa (55 percent), and Sindh (54 percent).
The survey also highlighted widespread corruption in the health sector, where a majority of respondents (67 percent) believed that corrupt and unethical practices posed a serious threat to the lives of ordinary citizens. This perception was highest in Sindh at 69 percent, followed closely by Khyber Pakhtunkhwa at 68 percent, Balochistan at 67 percent, and Punjab at 63 percent. Hospitals, doctors, and pharmaceutical companies were all cited as being involved in various malpractices.
Another damning assessment comes from the IMF, which has identified corruption as a central cause of Pakistan’s economic crisis, driven largely by elite capture. According to the IMF, state policies are frequently designed to benefit a narrow circle of political and business elites, while state institutions remain dysfunctional and unable to enforce the rule of law or protect public resources.
The IMF report estimates that “elite privilege”—defined as preferential access to subsidies, tax exemptions, and lucrative state contracts for a select few—drains billions of dollars from the economy each year. In addition, widespread tax evasion and regulatory capture discourage genuine private-sector investment. These findings echo a 2021 United Nations Development Programme (UNDP) report, which estimated that economic privileges enjoyed by Pakistan’s elite groups, including politicians and the powerful military, amount to nearly six percent of the national economy. Entrenched interests, the report notes, shape rules and institutions to preserve their unfair advantages.
The IMF further points out that tax expenditures, including exemptions and concessions granted to influential sectors such as real estate, manufacturing, and energy, cost the state 4.61 percent of GDP in the 2023 fiscal year alone. Unsurprisingly, Pakistan continues to rank near the bottom of global governance indicators. Between 2015 and 2024, the country’s score on control of corruption remained largely stagnant, placing it among the worst-performing countries globally and within its region.
The report warns that without dismantling entrenched structures of elite privilege, meaningful economic reform will remain impossible. It states that “the most economically damaging manifestations involve privileged entities that exert influence over key economic sectors, including those owned by or affiliated with the state.” At the same time, the IMF emphasises that Pakistan could reap substantial economic benefits if governance improves and accountability mechanisms are strengthened. The report estimates that comprehensive governance reforms implemented over five years could raise GDP growth by 5 to 6.5 percent.
In Pakistan, corruption flourishes due to multiple factors, including weak accountability, lack of transparency, limited access to information, and prolonged delays in the adjudication of corruption cases. Anti-corruption institutions such as the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) have largely failed to perform their mandated roles. Public perception strongly suggests a lack of transparency in investigations, absence of independent oversight, and frequent misuse of anti-corruption laws for political victimisation.
Experts argue that beyond strengthening accountability mechanisms at all levels, parliament must enact laws to limit the discretionary powers of state officials and further reinforce right-to-information legislation. At the same time, stronger legal protection must be provided to whistleblowers and individuals who report illegal and unethical practices within government institutions.
Ultimately, corruption in Pakistan—manifested through elite capture of markets, regulatory bodies, and public policy—is deeply political in nature and cannot be eliminated without broader structural and societal reforms. This challenge calls for sustained public awareness campaigns, coupled with exemplary punishment for corrupt officials who sacrifice the public interest for personal gain.